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Gary Edwards

Can C.E.O. Satya Nadella Save Microsoft? | Vanity Fair - 0 views

www.vanityfair.com/...-gates-steve-ballmer-microsoft

Microsoft-Cloud

shared by Gary Edwards on 09 Oct 14 - No Cached
  • he new world of computing is a radical break from the past. That’s because of the growth of mobile devices and cloud computing. In the old world, corporations owned and ran Windows P.C.’s and Window servers in their own facilities, with the necessary software installed on them. Everyone used Windows, so everything was developed for Windows. It was a virtuous circle for Microsoft.
  • Now the processing power is in the cloud, and very sophisticated applications, from e-mail to tools you need to run a business, can be run by logging onto a Web site, not from pre-installed software. In addition, the way we work (and play) has shifted from P.C.’s to mobile devices—where Android and Apple’s iOS each outsell Windows by more than 10 to 1. Why develop software to run on Windows if no one is using Windows? Why use Windows if nothing you want can run on it? The virtuous circle has turned vicious.
  • Part of why Microsoft failed with devices is that competitors upended its business model. Google doesn’t charge for the operating system. That’s because Google makes its money on search. Apple can charge high prices because of the beauty and elegance of its devices, where the software and hardware are integrated in one gorgeous package. Meanwhile, Microsoft continued to force outside manufacturers, whose products simply weren’t as compelling as Apple’s, to pay for a license for Windows. And it didn’t allow Office to be used on non-Windows phones and tablets. “The whole philosophy of the company was Windows first,” says Heather Bellini, an analyst at Goldman Sachs. Of course it was: that’s how Microsoft had always made its money.
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  • Right now, Windows itself is fragmented: applications developed for one Windows device, say a P.C., don’t even necessarily work on another Windows device. And if Microsoft develops a new killer application, it almost has to be released for Android and Apple phones, given their market dominance, thereby strengthening those eco-systems, too.
  • At its core, Azure uses Windows server technology. That helps existing Windows applications run seamlessly on Azure. Technologists sometimes call what Microsoft has done a “hybrid cloud” because companies can use Azure alongside their pre-existing on-site Windows servers. At the same time, Nadella also to some extent has embraced open-source software—free code that doesn’t require a license from Microsoft—so that someone could develop something using non-Microsoft technology, and it would run on Azure. That broadens Azure’s appeal.
  • “In some ways the way people think about Bill and Steve is almost a Rorschach test.” For those who romanticize the Gates era, Microsoft’s current predicament will always be Ballmer’s fault. For others, it’s not so clear. “He left Steve holding a big bag of shit,” the former executive says of Gates. In the year Ballmer officially took over, Microsoft was found to be a predatory monopolist by the U.S. government and was ordered to split into two; the cost of that to Gates and his company can never be calculated. In addition, the dotcom bubble had burst, causing Microsoft stock to collapse, which resulted in a simmering tension between longtime employees, whom the company had made rich, and newer ones, who had missed the gravy train.
  • Nadella lived this dilemma because his job at Microsoft included figuring out the cloud-based future while maintaining the highly profitable Windows server business. And so he did a bunch of things that were totally un-Microsoft-like. He went to talk to start-ups to find out why they weren’t using Microsoft. He put massive research-and-development dollars behind Azure, a cloud-based platform that Microsoft had developed in Skunk Works fashion, which by definition took resources away from the highly profitable existing business.
  • They even have a catchphrase: “Re-inventing productivity.”
  • Microsoft’s historical reluctance to open Windows and Office is why it was such a big deal when in late March, less than two months after becoming C.E.O., Nadella announced that Microsoft would offer Office for Apple’s iPad. A team at the company had been working on it for about a year. Ballmer says he would have released it eventually, but Nadella did it immediately. Nadella also announced that Windows would be free for devices smaller than nine inches, meaning phones and small tablets. “Now that we have 30 million users on the iPad using it, that is 30 million people who never used Office before [on an iPad,]” he says. “And to me that’s what really drives us.” These are small moves in some ways, and yet they are also big. “It’s the first time I have listened to a senior Microsoft executive admit that they are behind,” says one institutional investor. “The fact that they are giving away Windows, their bread and butter for 25 years—it is quite a fundamental change.”
  • And whoever does the best job of building the right software experiences to give both organizations and individuals time back so that they can get more out of their time, that’s the core of this company—that’s the soul. That’s what Bill started this company with. That’s the Office franchise. That’s the Windows franchise. We have to re-invent them. . . . That’s where this notion of re-inventing productivity comes from.”
  • Ballmer might be a complicated character, but he has nothing on Gates, whose contradictions have long fascinated Microsoft-watchers. He is someone who has no problem humiliating individuals—he might not even notice—but who genuinely cares deeply about entire populations and is deeply loyal. He is generous in the biggest ways imaginable, and yet in small things, like picking up a lunch tab, he can be shockingly cheap. He can’t make small talk and can come across as totally lacking in E.Q. “The rules of human life that allow you to get along are not complicated,” says one person who knows Gates. “He could write a book on it, but he can’t do it!”
  • At the Microsoft board meeting in late June 2013, Ballmer announced he had a handshake deal with Nokia’s management to buy the company, pending the Microsoft board’s approval, according to a source close to the events. Ballmer thought he had it and left before the post-board-meeting dinner to attend his son’s middle-school graduation. When he came back the next day, he found that the board had pulled a coup: they informed him they weren’t doing the deal, and it wasn’t up for discussion. For Ballmer, it seems, the unforgivable thing was that Gates had been part of the coup, which Ballmer saw as the ultimate betrayal.
  • what is scarce in all of this abundance is human attention
  • And the original idea of having great software people and broad software products and Office being the primary tool that people look to across all these devices, that’ s as true today and as strong as ever.”
  • Meeting Room Plus
  • But he combines that with flashes of insight and humor that leave some wondering whether he can’t do it or simply chooses not to, or both. His most pronounced characteristic shouldn’t be simply labeled a competitive streak, because it is really a fierce, deep need to win. The dislike it bred among his peers in the industry is well known—“Silicon Bully” was the title of an infamous magazine story about him. And yet he left Microsoft for the philanthropic world, where there was no one to bully, only intractable problems to solve.
  • “The Irrelevance of Microsoft” is actually the title of a blog post by an analyst named Benedict Evans, who works at the Silicon Valley venture-capital firm Andreessen Horowitz. On his blog, Evans pointed out that Microsoft’s share of all computing devices that we use to connect to the Internet, including P.C.’s, phones, and tablets, has plunged from 90 percent in 2009 to just around 20 percent today. This staggering drop occurred not because Microsoft lost ground in personal computers, on which its software still dominates, but rather because it has failed to adapt its products to smartphones, where all the growth is, and tablets.
  • The board told Ballmer they wanted him to stay, he says, and they did eventually agree to a slightly different version of the deal. In September, Microsoft announced it was buying Nokia’s devices-and-services business for $7.2 billion. Why? The board finally realized the downside: without Nokia, Microsoft was effectively done in the smartphone business. But, for Ballmer, the damage was done, in more ways than one. He now says it became clear to him that despite the lack of a new C.E.O. he couldn’t stay. Cultural change, he decided, required a change at the top, and, he says,“there was too much water under the bridge with this board.” The feeling was mutual. As a source close to Microsoft says, no one, including Gates, tried to stop him from quitting.
  • in Wall Street’s eyes, Nadella can do no wrong. Microsoft’s stock has risen 30 percent since he became C.E.O., increasing its market value by $87 billion. “It’s interesting with Satya,” says one person who observes him with investors. “He is not a business guy or a financial analyst, but he finds a common language with investors, and in his short tenure, they leave going, Wow.” But the honeymoon is the easy part.
  • “He was so publicly and so early in life defined as the brilliant guy,” says a person who has observed him. “Anything that threatens that, he becomes narcissistic and defensive.” Or as another person puts it, “He throws hissy fits when he doesn’t get his way.”
  • round three-quarters of Microsoft’s profits come from the two fabulously successful products on which the company was built: the Windows operating system, which essentially makes personal computers run, and Office, the suite of applications that includes Word, Excel, and PowerPoint. Financially speaking, Microsoft is still extraordinarily powerful. In the last 12 months the company reported sales of $86.83 billion and earnings of $22.07 billion; it has $85.7 billion of cash on its balance sheet. But the company is facing a confluence of threats that is all the more staggering given Microsoft’s sheer size. Competitors such as Google and Apple have upended Microsoft’s business model, making it unclear where Windows will fit in the world, and even challenging Office. In the Valley, there are two sayings that everyone regards as truth. One is that profits follow relevance. The other is that there’s a difference between strategic position and financial position. “It’s easy to be in denial and think the financials reflect the current reality,” says a close observer of technology firms. “They do not.”
  • Gary Edwards on 09 Oct 14
     
    Awesome article describing the history of Microsoft as seen through the lives of it's three CEO's: Bill Gates, Steve Ballmer and Satya Nadella
Paul Merrell

Edward Snowden Explains How To Reclaim Your Privacy - 0 views

theintercept.com/...ns-how-to-reclaim-your-privacy

surveillance state Snowden operational-security advice must-read

shared by Paul Merrell on 16 Nov 15 - No Cached
  • Micah Lee: What are some operational security practices you think everyone should adopt? Just useful stuff for average people. Edward Snowden: [Opsec] is important even if you’re not worried about the NSA. Because when you think about who the victims of surveillance are, on a day-to-day basis, you’re thinking about people who are in abusive spousal relationships, you’re thinking about people who are concerned about stalkers, you’re thinking about children who are concerned about their parents overhearing things. It’s to reclaim a level of privacy. The first step that anyone could take is to encrypt their phone calls and their text messages. You can do that through the smartphone app Signal, by Open Whisper Systems. It’s free, and you can just download it immediately. And anybody you’re talking to now, their communications, if it’s intercepted, can’t be read by adversaries. [Signal is available for iOS and Android, and, unlike a lot of security tools, is very easy to use.] You should encrypt your hard disk, so that if your computer is stolen the information isn’t obtainable to an adversary — pictures, where you live, where you work, where your kids are, where you go to school. [I’ve written a guide to encrypting your disk on Windows, Mac, and Linux.] Use a password manager. One of the main things that gets people’s private information exposed, not necessarily to the most powerful adversaries, but to the most common ones, are data dumps. Your credentials may be revealed because some service you stopped using in 2007 gets hacked, and your password that you were using for that one site also works for your Gmail account. A password manager allows you to create unique passwords for every site that are unbreakable, but you don’t have the burden of memorizing them. [The password manager KeePassX is free, open source, cross-platform, and never stores anything in the cloud.]
  • The other thing there is two-factor authentication. The value of this is if someone does steal your password, or it’s left or exposed somewhere … [two-factor authentication] allows the provider to send you a secondary means of authentication — a text message or something like that. [If you enable two-factor authentication, an attacker needs both your password as the first factor and a physical device, like your phone, as your second factor, to login to your account. Gmail, Facebook, Twitter, Dropbox, GitHub, Battle.net, and tons of other services all support two-factor authentication.]
  • We should armor ourselves using systems we can rely on every day. This doesn’t need to be an extraordinary lifestyle change. It doesn’t have to be something that is disruptive. It should be invisible, it should be atmospheric, it should be something that happens painlessly, effortlessly. This is why I like apps like Signal, because they’re low friction. It doesn’t require you to re-order your life. It doesn’t require you to change your method of communications. You can use it right now to talk to your friends.
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  • Lee: What do you think about Tor? Do you think that everyone should be familiar with it, or do you think that it’s only a use-it-if-you-need-it thing? Snowden: I think Tor is the most important privacy-enhancing technology project being used today. I use Tor personally all the time. We know it works from at least one anecdotal case that’s fairly familiar to most people at this point. That’s not to say that Tor is bulletproof. What Tor does is it provides a measure of security and allows you to disassociate your physical location. … But the basic idea, the concept of Tor that is so valuable, is that it’s run by volunteers. Anyone can create a new node on the network, whether it’s an entry node, a middle router, or an exit point, on the basis of their willingness to accept some risk. The voluntary nature of this network means that it is survivable, it’s resistant, it’s flexible. [Tor Browser is a great way to selectively use Tor to look something up and not leave a trace that you did it. It can also help bypass censorship when you’re on a network where certain sites are blocked. If you want to get more involved, you can volunteer to run your own Tor node, as I do, and support the diversity of the Tor network.]
  • Lee: So that is all stuff that everybody should be doing. What about people who have exceptional threat models, like future intelligence-community whistleblowers, and other people who have nation-state adversaries? Maybe journalists, in some cases, or activists, or people like that? Snowden: So the first answer is that you can’t learn this from a single article. The needs of every individual in a high-risk environment are different. And the capabilities of the adversary are constantly improving. The tooling changes as well. What really matters is to be conscious of the principles of compromise. How can the adversary, in general, gain access to information that is sensitive to you? What kinds of things do you need to protect? Because of course you don’t need to hide everything from the adversary. You don’t need to live a paranoid life, off the grid, in hiding, in the woods in Montana. What we do need to protect are the facts of our activities, our beliefs, and our lives that could be used against us in manners that are contrary to our interests. So when we think about this for whistleblowers, for example, if you witnessed some kind of wrongdoing and you need to reveal this information, and you believe there are people that want to interfere with that, you need to think about how to compartmentalize that.
  • Tell no one who doesn’t need to know. [Lindsay Mills, Snowden’s girlfriend of several years, didn’t know that he had been collecting documents to leak to journalists until she heard about it on the news, like everyone else.] When we talk about whistleblowers and what to do, you want to think about tools for protecting your identity, protecting the existence of the relationship from any type of conventional communication system. You want to use something like SecureDrop, over the Tor network, so there is no connection between the computer that you are using at the time — preferably with a non-persistent operating system like Tails, so you’ve left no forensic trace on the machine you’re using, which hopefully is a disposable machine that you can get rid of afterward, that can’t be found in a raid, that can’t be analyzed or anything like that — so that the only outcome of your operational activities are the stories reported by the journalists. [SecureDrop is a whistleblower submission system. Here is a guide to using The Intercept’s SecureDrop server as safely as possible.]
  • And this is to be sure that whoever has been engaging in this wrongdoing cannot distract from the controversy by pointing to your physical identity. Instead they have to deal with the facts of the controversy rather than the actors that are involved in it. Lee: What about for people who are, like, in a repressive regime and are trying to … Snowden: Use Tor. Lee: Use Tor? Snowden: If you’re not using Tor you’re doing it wrong. Now, there is a counterpoint here where the use of privacy-enhancing technologies in certain areas can actually single you out for additional surveillance through the exercise of repressive measures. This is why it’s so critical for developers who are working on security-enhancing tools to not make their protocols stand out.
  • Paul Merrell on 16 Nov 15
     
    Lots more in the interview that I didn't highlight. This is a must-read.
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